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Essay on Management Theories

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After the end of the Industrial Revolution, large corporations were beginning to grow in size and power in order to satisfy what seemed the endless demands for new goods and services. As corporations and labor forces grew, there was a need to develop a more systematic study of organization and management, known as management theory, the significant being Frederick Taylor's Principles of Scientific Management which involved the development of training workers through special incentives and compensation (Boone p.33). In general, early management scientists tended to believe that there was a single way to organize companies and manage employees. By the beginning of the 20th century, there were initial attempts for launching a systematic and …show more content…

Herzberg concluded that extrinsic rewards, or hygiene factors, could never create real work motivation. The growth or motivational factors in a firm include achievement, recognition, responsibility, and advancement while the dissatisfaction -avoidance or hygiene factors consists of extrinsic factors such as administration, supervision, interpersonal relationships, working conditions and salary (Boone p.176). Thus, in attempting to enrich an employee's job, it was necessary for management to reward and recognize personal contribution rather than just giving the employee the opportunity to growth. This school of thought is known as vertical loading was at the time thought of to be more rewarding to employees and increase productivity rather than horizontal loading, which did not concentrate on employees' motivational factors.
Unlike Herzberg, who focused on employee recognition and rewards, Peter F. Drucker, a more recent influential figure in management theory, argued that in modern times, employees in a firm should be given the opportunity to grow and contribute to management and the decision-making process. In his article, Management's New Paradigms, Drucker asserts that there are many assumptions about management that are out of date, including the ‘right way' to manage people. Every worker place

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